Real Estate 101: What is a 2-5-10 Year Home Warranty?

Home warranty insurance can only be provided by insurance companies approved by the provincial Financial Institutions Commission.

Minimum coverage and allowable exclusions for third-party home warranty insurance are set by legislation. As a minimum, homes built by Licensed Residential Builders must have 2-5-10 year home warranty insurance.

A new home is likely the largest investment of your lifetime. If you have purchased a new home built and sold by a by Licensed Residential Builder, you are eligible to protect your investment from defects from a new home warranty in BC.

B.C.’s Homeowner Protection Act and Regulations, which has been in effect since 1999, outline specific details about the mandatory home warranty coverage. BC’s program, commonly referred to as 2-5-10 Year Home Warranty, is one of the most comprehensive home warranty available in North America. A 2-5-10 Year Home Warranty Certificate provides new homeowners with important home protection and coverage both before and after buying a new home.

What’s covered under a 2-5-10 Year Home Warranty Certificate?

2 Year Material & Labour Warranty

First 12 months – Coverage for any defect in materials and labour;
First 15 months – Coverage for any defects in materials and labour in the common property of a multi-unit building;
First 24 months – Coverage for any defect in materials and labour supplied for the electrical, plumbing, heating, ventilation and air-conditioning delivery and distribution systems. In addition, coverage for any defect in materials and labour supplied for the exterior cladding, caulking, windows and doors that may lead to detachment or material damage to the new home.

5 Year Building Envelope Warranty

Coverage for the building envelope for up to five years for defects in the building envelope of a new home, including a defect which permits unintended water penetration such that it causes, or is likely to cause, material damage to the new home.

10 Year Structural Defects Warranty Coverage for structural defects for up to 10 years for:

Any defect in materials and labour that results in the failure of a load-bearing part of the new home;
A defect that causes structural damage that materially and adversely affects the use of the new home for residential occupancy.

Note: For complete warranty coverage information, please refer to the applicable 2-5-10 Year Home Warranty Certificate for the property you own/are planning to buy.

I'd be happy to answer any further questions that you may have on this topic. Please click here.

As a Vancouver real estate consultant, my business grows by building strong client focused relationships. I would welcome the opportunity to answer any questions about the real estate market.

If you would like to find out how much your home is worth in today's market, to discuss listing your home or buying a new home, please contact me on (604) 781-5692 or via email - tim@timwray.ca

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